A Future Economic Benefit Owned or Controlled by an Entity

question 100

Multiple Choice

A future economic benefit owned or controlled by an entity is:

• A)A revenue.
• B)An asset.
• C)A liability.
• D)A contra asset until used.

---

Definitions:

Maturity Risk

The risk associated with the changing value of securities due to the time remaining until their maturity date.

Yield to Maturity

The total return anticipated on a bond if it is held until the maturity date, factoring in the current price, par value, coupon yield, and time to maturity.

Coupon Rate

Each year, the interest rate a bond yields, expressed in terms of the percentage of its face value.

Premium

A premium is the amount by which the price of a security or financial instrument exceeds its intrinsic or face value.